The Securities Industry and Financial Markets Association endorsed best practice guidelines for improved regulation of the world’s financial markets, developed by the International Council of Securities Associations.

The guidelines, which are targeted toward the community of international financial regulators, came out in advance of the IOSCO Technical Committee Conference in London, which brings together the world’s leading securities regulators and the securities industry in a dialogue on the global regulatory agenda for financial markets.

The SIFMA says that ICSA’s guidelines highlight the need for an approach to regulation that supports competition and consumer protection while at the same time avoiding unnecessary and excessive regulation.

“These guidelines underscore the fact that a drive for efficient, effective regulation is a top priority for our industry around the globe,” said Marc Lackritz, SIFMA co-CEO. One of SIFMA’s key initiatives in the US is to work with regulators to form a hybrid SRO, which will reduce redundant regulation.

“Achieving the balance of effective and stringent, yet not excessive regulation is a top priority for SIFMA,” said Micah Green, SIFMA co-CEO. “We welcome European regulators’ drive to principles-based regulation. A consistent set of principles will lead to better policy and provide a cohesive framework for our members active in the global markets.”

The guidelines recommend: establishing whether there is a significant market failure or financial misbehavior which is not appropriately addressed by existing regulations; setting a robust burden of proof for regulatory action to deal with a market failure; and, that regulators should rely on stable, principles-based regulations.

http://www.sia.com/SIFMA_Press/2006_press_releases/34570191.html